Cheese Whiz

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Sep 17, 2014
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I'm a baby attending and likewise new to the whole independent contractor gig. I'm considering buying pepid for my phone and restarting EM: RAP for my commute. Is it safe to assume these expenses would be considered a work deduction for taxes? Also is there any harm (with tax deductions) in purchasing multiple year deals at this time?
 

Groove

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I use PEPID, Epocrates, EMRA ABx guide regularly. I wasn't too impressed with WikEM. It felt like PEPID lite. I also have a personal uptodate subscription and use it regularly. It's expensive but the auto CMEs are a nice bonus.
 
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future_dr_house

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Also a new IC attending. I didn't like pepid too much. Too expensive for what seems to be available elsewhere. If you have to get it though, it should be a work deduction.


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southerndoc

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I don't think anyone has answered your question...

Yes, these are tax deductible as business expenses, which means it reduces your total taxable income (as opposed to personal deductions).

You should keep records of everything: pens, e-fax subscriptions, domain names (if you have your own website related to your business), computers used exclusively for work, white coats/scrubs, tailoring of your scrubs, dry cleaning bills of work attire, journals, professional memberships (the majority of the amount, usually it's listed what is tax deductible), CME activity, ePocrates/Pepid/UpToDate subscriptions, etc.

When purchasing multi-year deductions, I've deducted the amount fully in one year and then skipped the other years until it's time for renewal.

Riskier things to deduct, but can be done (with strong guidance by your CPA): mileage when staying out of town for an overnight shift, meals while at work if not provided for free (if provided for free, the IRS is cracking down on this and you may be audited for needing to pay taxes on the amount of free meals), home office deduction (probably shouldn't do unless you also do some consulting work; the "document from home" approach doesn't cut it most times), cell phone deduction, etc. You can deduct the cell phone if it's a dedicated cell phone that you use to call back patients for Press-Ganey reasons, but if you use it for personal use too it's hard to legitimately claim deductions.

Hope this helps. You should consult a CPA. Definitely make sure you fully fund your retirement plan (either individual 401(k) or SEP-IRA) up to the maximum allowed by your income.
 
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